INVESTING IN ITS PEOPLE TOPS SAUDI’S ECONOMIC AGENDA
The launch of the Human Capability Development Program (HCDP), one of the key pillars of the Saudi Vision 2030 initiative, is seen as a vital step forward in equipping Saudi citizens with the skillsets needed in the future world of work, and in creating a dynamic and highly skilled labour force.
“The Human Capability Development Program represents a national strategy to enhance the competitiveness of national human capabilities locally and globally to be ready for the current and future labour market with capabilities and ambitions that compete with the world, and that is through: instilling and promoting values, developing basic and future skills, and developing knowledge,” according to His Royal Highness Mohammed bin Salman bin Abdulaziz Al Saud, crown prince, deputy prime minister and chairman of the HCDP Committee.
MEDIUM-TERM TARGETS
Launched in September, the programme features 89 initiatives aimed at achieving the 16 strategic objectives of Saudi Vision 2030. It is built on three pillars: 1) to develop a resilient and strong educational base, 2) to prepare for the future labour market locally and globally, and 3) to provide lifelong learning opportunities.
HCDP aims to hone the skills of citizens, cultivate resilience, inspire hard work, improve access to education for all, nurture the brightest minds in key areas, upgrade the educational infrastructure, improve the readiness of youth to enter the labour market, and support a culture of innovation and entrepreneurship.
The programme’s medium-term goals aim to ensure six Saudi universities are ranked among the world’s top universities globally by 2025, increase Saudisation by 40% in highly skilled jobs, and improve the kingdom’s ranking in the World Bank’s Human Capital Index to 45th, from the current 84th.
The kingdom’s human capability ecosystem has undergone many successful transformations, including continuation of the educational processes and activities during the COVID-19 pandemic. Several digital platforms have also been launched, including the virtual kindergarten and ‘Madrasati’.
“On the other hand, research, development and innovation ecosystem output has increased significantly in terms of the number of research publications and global partnerships. For instance, the kingdom was ranked 14th in the number of COVID-19 publications,” according to the HCDP report.
PRIVATE SECTOR COLLABORATION
Vision 2030 is proceeding swiftly on many fronts, too.
A new partnership between the National Industrial Development and Logistics Program (NIDLP) and Ajlan & Bros Holding Group Abilitii (ABHGA) highlights the vital role government and the private sector will play to achieve many of the Vision 2030 targets.
ABHGA aims to invest SAR 50 billion over the next 10 years in a number of NIDLP programmes, which will expand the kingdom’ logistics, manufacturing, and transportation infrastructure.
“This agreement can be considered the start for several important projects, including developing strategic titanium industries to become the key in localising promising industries, such as aviation and military industries, and establishing a mining services company and modern laboratories that provide services to the mining sector locally and regionally, in addition to developing a stock market for mining companies and a minerals trading platform that empowers investors and increases private sector contribution in achieving diversification and economic growth for the kingdom,” said Ali Alhazmi, CEO of ABHGA.
The Public Investment Fund (PIF) is also pursuing its strategy to achieve several of the Vision 2030 goals. The sovereign wealth fund plans to inject SAR 150 billion into the national economy annually until 2025, according to the kingdom’s pre-budget 2022 statement.
“In addition, several projects are ongoing, which are expected to boost growth in the kingdom through creating investment opportunities and developing nascent sectors such as tourism through the NEOM project, the Red Sea project, the Qiddiya project, and the Amaala project,” according to the Ministry of Finance.
PROPPING UP THE NON-OIL SECTOR
In September, PIF bought shares in Emaar the Economic City (EEC). The transaction converted EEC debt valued at SAR 2.8 billion into a 25% stake in the company.
The transaction will boost Saudi Arabia’s plan to create new knowledge cities and unlock opportunities in the promising non-oil sector.
“Our investment in EEC aligns with our broader 2021-2025 strategy, which aims to build strategic economic partnerships through PIF and unlock the capabilities of promising sectors in the kingdom, including transportation, logistics, real estate and tourism,” said Eng. Aiman AlMudaifer, head of PIF’s local real estate division.
Economic growth at the grassroots levels is also one of the central pillars of Vision 2030.
In February, Monshaat launched an SME Bank as part of the National Development Fund (NDF), which aims to boost funding for small and medium enterprises (SMEs) and raise the contribution of financial institutions to the domestic sector.
“Part of that role includes private investment stimulus programmes under the umbrella of Shareek Program, a key element in the National Investment Strategy,” according to the pre-budget statement.
“It aims to build a co-operative framework between the public sector and companies in the private sector in order to achieve investment targets that would inject close to SAR 5 trillion in new investments by 2030.”
Contact SAB
